Tower One Wireless Corp (TOWTF)

[gjervis]

Another quarter of over promise and under deliver it seems.

Seems Alex is being patient on getting the right type of financing for current shareholders and wont rush into one that would wipe us out.

Seems the Spinout of TCTS isnt going as expected due to the long overdue announcement. Not as easy at it seems i guess.

In terms of tower count, it could be safe to say that we have close to 60 towers assuming the 5 towers/month build out rate.

Based on that number and assuming no additional collocations and using the 15 times cash flow valuaiton method.

then 49 single towers would be valued at - $8.82M
and the 11 collocated towers would be valued at - $3.96M

total value would be around - $12.78M

Assuming a bank wants to be conservative and say value the towers for half that value, then we should be able to borrow $6.39M if we commit the 60 towers.

with $6.39M and building towers for $75K/tower, then that would be 85 additional towers.

i am not sure what the interest rate would be, but i am being conservative, say the bank lends that at 10% for 10 years, then that would be a monthly payment of $85K, adding 85 towers to the 60 towers and assuming no collocation apart from the 11 done already, then the monthly revenue would be 156K/month from 145 towers.

So, lets say we get that loan, we committed the 60 towers for that, that gives us 85 more towers for a total of 145 leading to enough funds to cover the first loan. now we have 85 towers to leverage, with 85 towers we can possibly go back to the same bank and rinse repeat.

and this doesnt include the additional benefit of collocation.

i figure a bank would be willing to lend at 10% interest and sit on assets that is worth twice the value its lending out with that value possibly increasing should they get collocated.

maybe my approach is way too simple and i am missing out on many things.

but its clear leveraging TO isnt as simple as Alex thought. i am doubting we will be at 100 towers by end of 2018. lucky if we make 80. Seems this will take a tad longer in terms of growing based on the missed targets of Q2.
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